Money laundering supervision for money service businesses
Find out if you’re a money service business and need to register with HM Revenue and Customs (HMRC) under Money Laundering Regulations.
If you’re already supervised by the Financial Conduct Authority (FCA), you don’t also need to register with HMRC.
You must not run a money service business until you’ve registered.
The term money service business has a special meaning under the Money Laundering Regulations.
When you put anti-money laundering policies and procedures in place, you must make sure they cover all your activities carried out under the regulations.
Who should register
You must register your business if it:
- acts as a bureau de change, even if this is on a ship that isn’t always in UK territorial waters
- transmits money, or any representation of money (just collecting and delivering money as a cash courier isn’t transmitting money)
- cashes cheques that are payable to your customers
- is a pawnbroker acting as a money service business
- has a consumer credit license and is acting as a money service business
If you exchange currency or cash cheques occasionally
You don’t have to register if you meet all of these conditions:
- the total turnover from your money service activities is no more than £64,000 a year or 5% of your total annual turnover
- currency exchange or cheque cashing transactions worth more than €1,000 are limited to one per customer (this could be a single transaction or a series of smaller transactions that seem to be linked)
- money service activities must be secondary to your main business activity and directly related to it
- the currency exchange or cheque cashing service must only be available to customers of the main business, it mustn’t be available to the public
- your business isn’t operating as a trust or company service provider or an accountancy service provider
Transmitting money that’s not ‘by way of business’
If you transmit money from time to time but not by way of business you may not have to register. If you think you fall into this category contact HMRC to check.
If you collect money from your customers and deliver it to someone else, like re-stocking cash dispensers and delivering cash for shops you don’t need to register.
How to register
At the end of each registration period we’ll send you a renewal notice inviting you to renew your registration by paying the annual fee on all your listed premises. If you don’t need your registration to continue then you should notify HMRC.
If you don’t pay the correct renewal fee then HMRC may terminate your registration and remove your business from its anti-money laundering register.